Renaissance for Randhurst? Nevada firm pays $95 million for Mount Prospect mall

Editor’s note: An earlier version of this story said the property was acquired for $75.5 million. That figure has since been updated by the brokerage firm that sold the shopping center.

The Randhurst Village shopping center in Mount Prospect has been sold for $95 million to a Nevada group that specializes in redeveloping underused and struggling properties, village officials confirmed Wednesday.

Rhino Investments Group, based in Henderson, Nevada, acquired the core of the mall from DLC Management, Mount Prospect Community Development Director Jason Shallcross said. Rhino’s joint venture partner is M&J Wilkow of Chicago, he added.

Rhino’s purchase represents approximately three-quarters of the 94-acre site at Rand and Elmhurst roads, village officials said.

Among the parcels included in the sale are the Macy’s store, the AMC Theatres, Home Depot, Planet Fitness, the vacant former Outback Steakhouse building and the former Steak ‘n Shake that’s being remodeled for 7 Brew Coffee, Shallcross said.

The transaction does not encompass the entire development, village officials said. Following the subdivision of the property about five years ago, several outlots and individual parcels were separately sold to other owners in transactions totaling about $30 million.

The Hampton Inn & Suites property is also separately owned and was not included in the sale.

Mount Prospect Mayor Paul Hoefert said he is excited about the change and the possibility of a new way of looking at Randhurst, which opened as an enclosed mall in 1962 and converted to an open-air lifestyle center beginning in the late 2000s.

That includes the potential for residential properties on the site and more entertainment venues to attract more visitors, he said.

“I’m sure they didn’t buy it to leave it the way that it is,” Hoefert said of the new ownership. “It should be another renaissance for Randhurst Village, which is really a gem for us because it generates a lot of taxes for the village.”

Village Manager Michael Cassady said Randhurst is already successful, but its size and location provide opportunities for continued investment and evolution.

“The Village looks forward to working collaboratively with the new ownership team to explore those possibilities,” he said in a statement.

Rhino representatives did not respond to a request for comment Wednesday.

According to the company’s website, Rhino is a privately-held, diversified real estate acquisition and development firm whose “principal competency” is the repositioning and redevelopment of underutilized, distressed or environmentally challenged properties.

The firm owns more than 40 properties across the country, including The Promenade Bolingbrook, North Aurora Towne Center and State Street Market in Rockford.

Keely Polczynski, a senior managing director with sale broker Newmark, praised previous owner DLC for “creating meaningful value” at Randhurst Village and positioning it for long-term success.

“Rhino’s conviction in Randhurst Village never wavered,” Polczynski said. “Despite market volatility, the transaction closed at the original contract price, and we are confident the property will continue to thrive under Rhino’s ownership.”

DLC acquired Randhurst Village in 2016.

“When we acquired Randhurst Village, we saw an opportunity to create significantly more value through active ownership,” company founder and CEO Adam Ifshin said in a statement. “Our team tackled major vacancies, redeveloped obsolete spaces, brought new retailers and restaurants to the property, and continued investing in its long-term success.”

Although the center is more than 90% leased, Shallcross said there are plenty of opportunities available at Randhurst. The center continues to add businesses, including the recent addition of Skechers.

“Obviously, the Outback parcel is front and center as far as a development opportunity for the center,” he said. “There’s plenty of meat left on the bone.”

Hoefert noted that the basement and upper levels of the former Carson Pirie Scott space remain vacant, with HomeGoods and Macy’s on the main level.

Redeveloped from the former Randhurst Mall, the 931,798-square-foot open-air shopping center draws about 8.6 million annual visitors and has an average daily traffic count of approximately 69,000 vehicles, according to Newmark.

szalusky@dailyherald.com